Why did Ark Invest reduce its holdings in Tesla and Rocket Lab?

Important Changes from Ark Invest

Ark Invest, led by Cathie Wood, has reduced its holdings in iconic stocks like Tesla (TSLA) and space launch company Rocket Lab (RKLB), which are influential in the electric vehicle market. This strategic shift indicates that the company is defining a new direction for its future investments.

New Investment Opportunities

Ark Invest has increased its position in companies involved in gene regulation and autonomous mobility by investing in them. For example, it acquired approximately 155,649 shares in CRISPR Therapeutics (CRSP), a Swiss-American biotechnology company developing gene-based drugs, increasing its overall portfolio value to 8.8 billion dollars. Additionally, through the ARKK and ARKG funds, it purchased about 1.13 million shares of Pacific Biosciences of California (PACB).

The ARKQ fund, focused on autonomous mobility, acquired around 979,000 shares in WeRide (WRD), which is developing robotaxis; while the space-oriented ARKX fund added approximately 447,000 shares in Archer Aviation (ACHR) and 19,248 shares in AeroVironment (AVAV). Furthermore, it invested in innovative nuclear microreactor producers such as Oklo (OKLO).

Sales in Tesla and Rocket Lab

Ark Invest also made share sales in some significant companies in the electric vehicle and cloud software sectors. Through the ARKK, ARKW, and ARKQ funds, it sold approximately 60,715 Tesla shares worth around 30 million dollars. Additionally, the ARKW fund reduced its positions in Cloudflare (NET) and Palantir (PLTR). It opted to decrease its stakes in Roku (ROKU) and Shopify (SHOP). Furthermore, small-scale sales were carried out in Ibotta (IBTA) and Ionis Pharmaceuticals (IONS).

These changes provide hints about Ark Invest's market strategy and future investment focuses. The interest in the fields of gene regulation and autonomous mobility particularly reflects the company's belief in innovative technologies.